In a major boost to Ethiopia’s renewable energy sector, Chinese renewable energy company Ming Yang Smart Energy Group has secured an investment license for a massive $14.8 billion clean energy project in the country. The development is being seen as one of the largest private sector investments in Ethiopia’s history and is expected to transform the nation’s power generation landscape while strengthening its position in East Africa’s renewable energy market.

The project will be implemented in two phases and will focus on large-scale renewable energy generation, green ammonia production, and local manufacturing of energy equipment. In the first phase, the company plans to invest nearly $7.47 billion to develop around 8.4 GW of renewable energy capacity. This includes 5.4 GW of wind energy and 2.8 GW of solar power projects that will be located in the South Omo, Afar, and Somali regions of Ethiopia.

The renewable energy expansion is aimed at reducing Ethiopia’s heavy dependence on hydropower, which currently contributes almost 96% of the country’s electricity supply. Officials believe that increasing the share of solar and wind power will help create a more balanced and reliable electricity system, especially during periods of drought that often affect hydropower generation.

In the second phase, Ming Yang will invest an additional $7.3 billion in green ammonia production and industrial manufacturing facilities. The company plans to establish factories in Ethiopia to manufacture wind turbines and electrical transmission equipment locally. This is expected to support technology transfer, improve local industrial capacity, and generate thousands of employment opportunities for Ethiopian workers.

According to the Ethiopian Investment Commission, the project has expanded significantly from an earlier $10 billion agreement that was signed during the “Invest in Ethiopia 2026” forum. The rise in investment value reflects increasing investor confidence in Ethiopia’s ongoing economic reforms, including foreign exchange liberalization and policies designed to attract international investors.

The Ethiopian government believes the partnership will strengthen the country’s ambition of becoming a renewable energy hub in the Horn of Africa. Along with meeting rising domestic electricity demand, the project is also expected to support Ethiopia’s long-term plans to export clean energy to neighboring countries. Analysts say the investment could play an important role in driving economic growth, industrial development, and regional energy cooperation while supporting global clean energy goals.

Related